CUNA’s Legislative Outlook

CUNA’s Legislative Outlook – a legislative review in areas of concern and interest to the credit union movement

Regulatory Burden Reducing regulatory burden is a key priority for CUNA, and in the Legislative Affairs department that means using our resources to urge Congress to encourage – and in some cases, direct – regulators to reduce burden on credit unions.  To that end, there are four areas that we are focusing on with respect to Congress and regulatory burden: Privacy Notification, Remittances, and Exemption Authority.

Privacy Notification:  Earlier this summer, Representatives Luetkemeyer (R-MO), Sherman (D-CA), and Meeks (D-NY), introduced H.R. 5817, the Eliminate Privacy Notice Confusion Act.  This legislation would amend the Gramm-Leach-Bliley Act to require financial institution to send privacy notification to consumers only when their privacy policy has changed.  We are working to lay the ground work for this legislation in a manner similar to our efforts on the ATM bill, and we have received positive response from Members and staff with whom we have discussed this issue.  We have included talking points regarding this bill in our briefing material.  Even though time is short, it is not outside the realm of possibility that we could get this bill through Committee this year if we are able to generate from momentum by adding cosponsors in August.

Remittances:  As I mentioned last week, Representatives Blain Luetkemeyer (R-MO) and Yvette Clarke (D-NY) are circulating a Dear Colleague letter encouraging Members of the House to sign-on to a letter encouraging the CFPB to delay and study the impact of its proposed remittances regulation. CUNA has been working with a number of other trades to develop this letter and encourage support for it.  If you are contacted by any Representative’s office, we hope you will let them know that we support the Luetkemeyer-Clarke letter.  I have attached a copy of the letter to this email for your information.  We understand that the following members have added their names to the letter:  Campbell, Canseco, Clarke (NY), Guinta, Hastings (FL), Huelskamp, Huizenga, Marchant, Neugebauer, Posey, Schweikert, and Stivers.   The deadline for Members to add their name to this letter is this Friday.

Exemption Authority:  CUNA has had the opportunity to testify before the 112th Congress 17 times, including 7 appearances this year.  Most of these hearings have given us the opportunity to discuss our concerns with the “crisis of creeping complexity” credit unions face with respect to regulatory burden.  As the CFPB has started using its rulemaking authority, we have been using these appearances to push for the CFPB to use its authority under Section 1022 of the Dodd-Frank Act to exempt credit unions from its regulations.  We have also taken advantage of the opportunity to raise concerns with the proposals to integrate the RESPA/TILA disclosures, the QM and QRM proposals, as well as the remittances rule.  We will continue to seek these opportunities to encourage Congress to put pressure on the regulators to reduce regulatory burden on credit unions.